Failure [INSTALL_FAILED_UPDATE_INCOMPATIBLE] followed by DELETE_FAILED_INTERNAL_ERROR

When im trying to run app on nexus5 device, android studio open error window that says "installation failed with message INSTALL_FAILED_CONFLICTING_PROVIDER" and than im asked if i want to uninstall existing application even if it doesnt exist on the device.
also, the run window shows "Failure [INSTALL_FAILED_CONFLICTING_PROVIDER]"

I noticed that when using Marshmallow (Android 6.0+) there is a problem with the new "com.google.android.gms" play services version 8.3.0 .
I would recommend using the 8.1.0 version - that solved the problem in my case.